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Original Value Law and Legal Definition

According to 12 USCS § 4901 (12), [Title 12. Banks and Banking; Chapter 49. Homeowners Protection] the term original value, with respect to a residential mortgage transaction, means “the lesser of the sales price of the property securing the mortgage, as reflected in the contract, or the appraised value at the time at which the subject residential mortgage transaction was consummated. In the case of a residential mortgage transaction for refinancing the principal residence of the mortgagor, such term means only the appraised value relied upon by the mortgagee to approve the refinance transaction.”